Lecturers
Lecturers at CGDE Institutions Jordan Adamson Assistant Professor at Institute for Empirical Economic Research, Leipzig University. Website Course: Econometrics (winter term…
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Department Profiles
Research Profiles of the IWH Departments All doctoral students are allocated to one of the four research departments (Financial Markets – Laws, Regulations and Factor Markets –…
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Cross-country Evidence on the Allocation of COVID-19 Government Subsidies and Consequences for Productivity
Tommaso Bighelli, Tibor Lalinsky, Juuso Vanhala
Journal of the Japanese and International Economies,
June
2023
Abstract
We study the consequences of the Covid-19 pandemic and related policy support on productivity. We employ an extensive micro-distributed exercise to access otherwise unavailable individual data on firm performance and government subsidies. Our cross-country evidence for five EU countries shows that the pandemic led to a significant short-term decline in aggregate productivity and the direct support to firms had only a limited positive effect on productivity developments. A thorough comparative analysis of the distribution of employment and overall direct subsidies, considering separately also relative firm-level size of support and the probability of being supported, reveals ambiguous cross-country results related to the firm-level productivity and points to the decisive role of other firm characteristics.
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Hollywood, Wall Street, and Mistrusting Individual Investors
Guido Lenz, Maximilian Mayer
Journal of Economic Behavior and Organization,
June
2023
Abstract
Individual investors reduce their trading activity in financial markets after the release of negatively biased Hollywood movies related to financial markets. These movies regularly depict financial markets and professionals active in them as marked by greed and corruption (Lichter et al. 1997). This decline in trading activity at the extensive margin comes together with depressed investor sentiment marked by higher likelihoods and volumes of selling than of buying transactions by those investors still active. Their avoidance of investing in and tendency to trade out of stocks related to companies in the financial industry, as well as their shift from actively managed mutual funds to passive vehicles (ETFs), provide evidence for the deterioration of investors’ trust in the financial industry and its managers. This channel is in line with existing literature on subjective beliefs in investment decisions and the impact of biased media coverage, such as the negative depiction of financial markets, shareholders, and managers in Hollywood movies.
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05.04.2023 • 8/2023
Gemeinschaftsdiagnose Frühjahr 2023: Inflation im Kern hoch – Angebotskräfte jetzt stärken
Die führenden Wirtschaftsforschungsinstitute haben ihre Prognose für den Anstieg der Wirtschaftsleistung im laufenden Jahr auf 0,3% angehoben. Im Herbst hatten sie noch mit einem Rückgang um 0,4% gerechnet. „Der konjunkturelle Rückschlag im Winterhalbjahr 2022/2023 dürfte glimpflicher ausgefallen sein als im Herbst befürchtet. Maßgeblich ist ein geringerer Kaufkraftentzug infolge deutlich rückläufiger Energiepreise“, sagt ifo-Konjunkturchef Timo Wollmershäuser zur Begründung. Dennoch wird die Inflationsrate nur langsam zurückgehen von 6,9% im vergangenen Jahr auf 6,0% in diesem Jahr.
Oliver Holtemöller
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14.03.2023 • 7/2023
Konjunktur aktuell: Gasspeicher voll – Konjunkturaussichten weniger trüb
Der im vergangenen Herbst erwartete deutliche Einbruch der deutschen Wirtschaft ist ausgeblieben, denn die Gasversorgungslage hat sich entspannt. Doch wegen hoher Inflation, gestiegener Realzinsen und rückläufiger Realeinkommen dürfte die Konjunktur schwach bleiben. Nach der Frühjahrsprognose des Leibniz-Instituts für Wirtschaftsforschung Halle (IWH) dürfte das Bruttoinlandsprodukt im Jahr 2023 um lediglich 0,4% zulegen, und die Inflationsrate bleibt mit 5,8% hoch.
Oliver Holtemöller
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Institutions and Corporate Reputation: Evidence from Public Debt Markets
Xian Gu, Iftekhar Hasan, Haitian Lu
Journal of Business Ethics,
Nr. 1,
2023
Abstract
Using data from China’s public debt markets, we study the value of corporate reputation and how it interacts with legal and cultural forces to assure accountability. Exploring lawsuits that change corporate reputation, we find that firms involved in lawsuits experience a decrease in bond values and a tightening of borrowing terms. Using the heterogeneities in legal and social capital environments across Chinese provinces, we find the effects are more pronounced for private firms, firms headquartered in provinces with low legal protections, and firms headquartered in provinces with high social capital. The results show that lawsuits that allege misconduct are associated with reputational penalties and that such penalties serve as substitutes for legal protections and as complements to cultural forces to provide ex post accountability and motivate ex ante trust.
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Do Larger Firms Exert More Market Power? Markups and Markdowns along the Size Distribution
Matthias Mertens, Bernardo Mottironi
IWH-CompNet Discussion Papers,
Nr. 1,
2023
Abstract
Several models posit a positive cross-sectional correlation between markups and firm size, which characterizes misallocation, factor shares, and gains from trade. Accounting for labor market power in markup estimation, we find instead that larger firms have lower product markups but higher wage markdowns. The negative markup-size correlation turns positive when conditioning on markdowns, suggesting interactions between product and labor market power. Our findings are robust to common criticism (e.g., price bias, non-neutral technology) and hold across 19 European countries. We discuss possible mechanisms and resulting implications, highlighting the importance of studying input and output market power in a unified framework.
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Do Larger Firms Exert More Market Power? Markups and Markdowns along the Size Distribution
Matthias Mertens, Bernardo Mottironi
IWH Discussion Papers,
Nr. 1,
2023
Abstract
Several models posit a positive cross-sectional correlation between markups and firm size, which characterizes misallocation, factor shares, and gains from trade. Accounting for labor market power in markup estimation, we find instead that larger firms have lower product markups but higher wage markdowns. The negative markup-size correlation turns positive when conditioning on markdowns, suggesting interactions between product and labor market power. Our findings are robust to common criticism (e.g., price bias, non-neutral technology) and hold across 19 European countries. We discuss possible mechanisms and resulting implications, highlighting the importance of studying input and output market power in a unified framework.
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20.12.2022 • 31/2022
Konjunktur aktuell: Keine tiefe Rezession trotz Energiekrise und Zinsanstieg
Die hohen Energiepreise und die Verschlechterung des Finanzierungsumfelds belasten die deutsche Konjunktur. Allerdings dürfte die Schwächephase über den Winter moderat ausfallen, auch weil die Energiepreisbremsen die privaten Einkommen stützen. Das Leibniz-Institut für Wirtschaftsforschung Halle (IWH) prognostiziert, dass das Bruttoinlandsprodukt im Jahr 2022 aufgrund der Erholung von der Pandemie in den ersten drei Quartalen um 1,8% zugenommen haben, den Winter über aber leicht sinken und im Jahr 2023 insgesamt stagnieren dürfte (Ostdeutschland: 1,8% und 0,2%). Die Inflation geht nach 7,8% im Jahr 2022 auf 6,5% im Jahr 2023 zurück.
Oliver Holtemöller
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